The FSA's aims underlying its Retail Distribution Review are laudable. The same underlying concerns have led to a number of initiatives on how to regulate advisers and the distribution of products to retail investors over a long number of years which, to date, have failed to come up with an effective answer to those concerns. It may well be that a drastic solution is required to address the problems.
Most of the FSA current initiatives are due to come in with effect from the end of 2012. These go further than previous initiatives - and are ahead of where the European initiatives currently sit.
The new rules introduce some unwelcome, and perhaps to some extent, unforeseen consequences for product providers. (Indeed some potential consequences for distribution via platforms are as yet unknown because the final provisions for platforms have yet to be determined.) It is these which are addressed in this Briefing Paper.